The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (USD, Millions)||$112.00||$154.48||$324.00||$350.50||$423.00|
|Source||Analyst x2||Analyst x4||Analyst x2||Analyst x2||Analyst x1|
Discounted (@ 10.08%)
Present value of next 5 years cash flows:
Terminal Value = FCF2021 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $423 × (1 + 2.47%) ÷ (10.08% – 2.47%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
$4,497 = $973 + $3,524
Value = Total value / Shares Outstanding ($4,497 / 44)Discount to Share Price
Value per share:
Current discount (share price of $318.91): -213.16%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 10.08% = 2.47% + (1.011 * 7.53%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value ($14,174,955,417).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
1.011 = 0.995 (1 + (1- 35%) (2.36%))
Levered Beta used in calculation = 1.011
Purchase Mercadolibre on or before the 'Buy Limit' to receive their next dividend payment.
Mr. Marcos Eduardo Galperín Co-Founded Mercadolibre, Inc. in 1999 and has been its Chairman, President and Chief Executive Officer since October 1999. Mr. Galperín served as Secretary of Mercadolibre, Inc. He worked at YPF S.A., where he was a Futures and Options Associate and managed YPF’s currency and oil derivatives program from 1994 to 1997. He served in the fixed income department of J.P. Morgan Securities Inc. in New York from June 1998 to August 1998. Mr. Galperín has been a Director of Mercadolibre Inc., since October 1999. He has been Director of Grupo Televisa, S.A.B. since April 2017. He has been a Director at Onapsis Inc. since November 2014. He has been an Independent Director of Globant S.A. since July 2014. He served as an Independent Director of Mail.ru Group from October 22, 2010 to October 2013. He served as a Director of TGLT S.A. He is a member of the Management Board of Stanford Graduate School of Business and a Director of the Board of Endeavor Global Inc. Among other distinctions and awards he has been awarded an Endeavor Award, a Konex Prize and has been recognised by Forbes Magazine as a top 10 member of its Forbes 40 under 40 list for the year 2010. Mr. Galperín received an MBA from Stanford University in 1999 and graduated with honors from the Wharton School of the University of Pennsylvania in 1994.
Average tenure and age of the Mercadolibre management team in years:
Average tenure and age of the Mercadolibre board of directors in years:
MercadoLibre, Inc. hosts online commerce platforms in Latin America. It offers MercadoLibre Marketplace, an automated online commerce service for businesses and individuals to list items and conduct their sales and purchases online in a fixed-price or auction-based format. The company’s Marketplace platform enables commerce through online classifieds for motor vehicles, vessels, aircraft, services, and real estate; and Internet users to browse through various products that are listed on its Website and to register with MercadoLibre to list and purchase items and services. It also provides MercadoLibre Classifieds service that enables users to list their offerings related to motor vehicles, vessels, aircraft, real estate, and services outside the Marketplace platform; and MercadoPago, an integrated online payments solution to facilitate transactions on and off the MercadoLibre Marketplace by providing a mechanism that allows its users to send and receive payments online. In addition, the company offers MercadoLibre Advertising platform, which enables large retailers and various other consumer brands to promote their products and services on the Internet by providing branding and performance marketing services; and advertisers to place text, display, or banner advertisements in order to promote their brands and offerings on its Webpages and associated sites. Further, it provides MercadoShops, a software-as-a-service, hosted online store solution that enables users to set-up, manage, and promote their own Webstores; and MercadoEnvios, a shipping service for marketplace users. The company was founded in 1999 and is headquartered in Buenos Aires, Argentina.
Capital Federal, C1430CRG,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|NasdaqGS||MELI||Common Stock||Nasdaq Global Select||US||USD||10. Aug 2007|
|DB||MLB1||Common Stock||Deutsche Boerse AG||DE||EUR||10. Aug 2007|
|BMV||MELI N||Common Stock||Bolsa Mexicana de Valores||MX||MXN||10. Aug 2007|
|BASE||MELI||CEDEAR EACH REP 2 ORD NPV||Buenos Aires Stock Exchange||AR||ARS||30. Aug 2013|
|Industry:||Internet Software and Services|